U.S. Stock Market Rallies as Tech Leads the Way, Nvidia (NVDA) Shines with AI Optimism

The U.S. stock market kicked off the week on a bullish note, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posting notable gains during Monday's trading.

The U.S. stock market had a strong start to the week, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posting significant gains during Monday’s trading session. The market gains were largely driven by tech sector momentum and robust demand for semiconductor and AI-related stocks.

The Dow Jones Industrial Average opened 0.5% higher, as Boeing (BA) and UnitedHealth (UNH) contributed to the gains. The S&P 500 also rose 1%, with tech and consumer discretionary stocks leading the advance.

Meanwhile, the tech-heavy Nasdaq Composite climbed 1.5%, continuing its recent strong performance. Apple (AAPL), Nvidia (NVDA), and Tesla (TSLA) were among the top performers in the index.

The market gains came despite a slight rise in Treasury yields. The 10-year Treasury yield ticked up to 4.63%, adding to the recent trend of higher borrowing costs.

Among the Dow Jones components, notable moves included:

– Boeing rose 1.3% after announcing a deal to sell 73 aircraft to Delta Air Lines (DAL).

– UnitedHealth gained 1.5%, continuing its strong performance in the healthcare sector.

– Salesforce (CRM) fell 0.7% after being downgraded by an investment firm.

Other companies that were making significant moves and either in or near buy zones included:

– Nvidia rallied 3.3% and broke out above a buy point of 146.54 in a double-bottom base pattern. This move came as investors grew optimistic about CEO Jensen Huang’s upcoming CES keynote and the company’s strong position in AI and chipmaking.

– Taiwan Semiconductor Manufacturing rose 6%, climbing back above a critical buy point of 205.63. The chipmaker announced strong December revenues, boosting the broader semiconductor sector.

– Hon Hai Precision Industry, which trades as Foxconn in the U.S., announced record Q4 revenues, adding to the positive outlook for chipmakers globally.

– Tesla extended Friday’s rebound, climbing another 2.6% on Monday. After a five-day losing streak, Tesla is now 16% below its all-time high, with investors watching for a potential continuation of its recovery.

– Keysight Technologies rose 1.2%, moving closer to a buy point in a cup-with-handle pattern. The company is set to report earnings later this week.

– Ciena is now trading just above a buy point in a double-bottom base pattern following Monday’s 0.9% gain. The company is also expected to report earnings this week.

– Wingstop slid 1.4%, pulling back from a buy zone following last week's breakout.

Major exchange-traded funds also reflected the positive sentiment in the stock market:

– SPDR S&P 500 ETF Trust (SPY) gained 1%.

– Invesco QQQ Trust (QQQ) rose 1.5%.

– iShares Core U.S. Growth ETF (IUSG) climbed 2%.

Oil prices continued to trade higher, with West Texas Intermediate crude trading at $74.55 per barrel, reflecting a steady demand outlook.

Later this week, key economic events like the Federal Reserve’s December meeting minutes and the December jobs report will be closely monitored by investors.

Overall, the U.S. stock market had a strong start to the week, driven by optimism about the tech sector, particularly in AI and semiconductors, as they await further updates on the broader economy and geopolitical developments.